Trading Diary
May 28, 2002

These extracts from my daily trading diary are intended to illustrate the techniques used in short-term trading and should not be interpreted as investment advice. Full terms and conditions can be found at Terms of Use .




USA
The Dow fell below 10000 to close at 9981 on low volume, down by 1.2%. The next support level is at 9800.
The primary trend is up, secondary - down.

The Nasdaq Composite held up better, closing down 9 points at 1652.
The primary and secondary trends are down.

The S&P 500 fell by 9 points to 1074.
The primary and secondary trends slope downwards.

 
Real disposable incomes decline
Personal incomes increased by 0.3% in April but prices rise 0.4%. (more)
 
ASX Australia
The All Ords closed up 3 points at 3338 on average volume. 
The primary trend is up, secondary trend - down. A break above 3370 would complete an inverted head and shoulders pattern.
Chaikin Money Flow is rising, signaling accumulation.
Slow Stochastic (20,3,3) crossed back to join MACD above its signal line.


 
AurionGold rises as Placer falls [AOR]
AurionGold continued to rise following the takeover offer, but stock of the bidder Placer Dome fell 7% on the Canadian Market after criticism that the bid lacked value. (more)
After the large breakaway gap on Monday, the stock tested support before rallying to close at $4.60.


 
Newcrest [NCM]
Shares of Newcrest made a new high, on speculation that it will be the next takeover target. (more)
Relative Strength (price ratio: xao) is strong but MACD and Chaikin MF show weakness.


 

Fairfax [FXJ]
Unenthusiastic market response to FXJ management restructure. (more)
Relative Strength (price ratio: xao) and MACD are weak. Chaikin MF has failed to cross into positive territory after a bullish divergence.


 





Conclusion
 
Short-term: Long - Stochastic and MACD are above their signal lines. Maintain tight stop-losses.
Medium-term: Wait for the All Ords to signal a reversal.
Long-term: Wait for a bull-trend on the Nasdaq or S&P 500 (primary cycle).

Colin Twiggs



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Colin Twiggs

Author: Colin Twiggs is a former investment banker with almost 40 years of experience in financial markets. He co-founded Incredible Charts and writes the popular Trading Diary and Patient Investor newsletters.

Using a top-down approach, Colin identifies key macro trends in the global economy before evaluating selected opportunities using a combination of fundamental and technical analysis.

Focusing on interest rates and financial market liquidity as primary drivers of the economic cycle, he warned of the 2008/2009 and 2020 bear markets well ahead of actual events.

He founded PVT Capital (AFSL No. 546090) in May 2023, which offers investment strategy and advice to wholesale clients.